Many states will be increasing their minimum wage in 2017. Check the list below to make sure you are in compliance in all states which you have employees. Most of these changes are effective January 1, 2017 unless otherwise indicated.

Alaska: $9.80

Arizona: $10.00

Arkansas: $8.50

California: $10.50 (employers with 25 or less employees will remain at $10)

Colorado: $9.30

Connecticut: $10.10

District of Columbia: $12.50 (effective July 1, 2017) ($3.33 for tipped employees)

Florida: $8.10 ($5.08 for tipped employees)

Hawaii: $9.25

Maine: $9.00 (effective January 7, 2017)

Maryland: $9.25 (effective July 1, 2017)

Massachusetts: $11.00 ($3.75 for tipped employees)

Michigan: $8.90 ($3.38 for tipped employees)

Missouri: $7.70 ($3.85 for tipped employees)

Montana: $8.15

New Jersey: $8.44

New York: $9.70 (effective December 31, 2016) ($11.00 for employers in NYC with 11 or more employees; $10.50 for employees in NYC with 10 or fewer employees; $10.00 for Long Island and Westchester, $10.75 for fast food employees outside of NYC; $12.00 for fast food employees in NYC)

UPDATE: November 22, 2016 – A federal judge has delayed the new overtime rule. At this time it is not known how long the rule will be delayed or if the new rule will be enforced at all in the future. The minimum salary threshold for exempt employees will remain at $455 per week until further notice.

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The Department of Labor (DOL) has issued the much anticipated final rules regarding overtime for salary employees.

Under the Fair Labor Standards Act (FLSA), the minimum pay for exempt employees is currently $455 per week (or $23,660 per year). Under the new rule, effective December 1, 2016, the minimum pay will increase to $913 per week (or $47,476 per year). The salary threshold will automatically be updated every three years, beginning on January 1, 2020, based on average wage growth.

An added provision of the new rule is the ability for employers to include nondiscretionary bonuses and incentive payments, including commissions, up to 10 percent of gross wages, to meet the minimum salary requirements. For example, if an employee is paid $44,000 base salary and receives a bonus of $4,000 per year (less than 10% of their gross annual salary), they could still be considered exempt under the new rule because their total compensation ($48,000) is higher than the new salary threshold.

Earlier this month New York legislature and Governor Cuomo agreed to increase the minimum wage for the eighth time in New York since 2013. For most employers in New York City, the minimum wage will increase to $15 per hour by the end of 2018.

The minimum wage increases are based on a three-tier wage system: one for New York City, a second for Nassau, Suffolk and Westchester counties, and a third for the rest of the state of New York.

Employees who receive tips will be required to be paid at least $7.50 per hour or 2/3 of the then current minimum wage, whichever is higher.

The new minimum wage schedules are as follows:

NEW YORK CITY

Employers with 11 or more employees

Effective Date

New Minimum Wage

Minimum Wage for Tipped Employees

December 31, 2016

$11.00

$7.50

December 31, 2017

$13.00

$8.70

December 31, 2018

$15.00

$10.00

Employers with 10 or less employees

Effective Date

New Minimum Wage

Minimum Wage for Tipped Employees

December 31, 2016

$10.50

$7.50

December 31, 2017

$12.00

$8.00

December 31, 2018

$13.50

$9.00

December 31, 2019

$15.00

$10.00

NASSAU, SUFFOLK & WESTCHESTER COUNTIES

Effective Date

New Minimum Wage

Minimum Wage for Tipped Employees

December 31, 2016

$10.00

$7.50

December 31, 2017

$11.00

$7.50

December 31, 2018

$12.00

$8.00

December 31, 2019

$13.00

$8.70

December 31, 2020

$14.00

$9.35

December 31, 2021

$15.00

$10.00

Remainder of New York State

Effective Date

New Minimum Wage

Minimum Wage for Tipped Employees

December 31, 2016

$9.70

$7.50

December 31, 2017

$10.40

$7.50

December 31, 2018

$11.10

$7.50

December 31, 2019

$11.80

$7.90

December 31, 2020

$12.50

$8.35

New York employers should start reviewing current employee wages now and prepare to increase wages accordingly based on the new schedules.

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The Department of Labor’s Wage and Hour Division recently announced that it will delay enforcement of certain rules pertaining to home care workers. These “direct care workers” provide home care services and include certified nursing assistants, home health aides, personal care aides, caregivers and companions.

For six months, the Department of Labor (DOL) will not bring enforcement actions against employers for violations of obligations resulting from amended regulations announced released last year.